Long-Term Debt

Our long-term debt as of December 31, 2018 and 2017 is as follows:



Long-term debt type	Maturity as of December 31, 2018	Weighted average interest rate (%)		Outstanding balance as of December 31, (in millions)
Long-term debt type	Maturity as of December 31, 2018	Weighted average interest rate (%)		2018			2017
Senior notes:
NiSource	March 2018	6.40	%	—			275.1
NiSource	January 2019	6.80	%	—			255.1
NiSource	September 2020	5.45	%	—			325.1
NiSource	December 2021	4.45	%	63.6			63.6
NiSource	March 2022	6.13	%	—			180.0
NiSource	November 2022	2.65	%	500.0			500.0
NiSource	February 2023	3.85	%	250.0			250.0
NiSource	June 2023	3.65	%	350.0			—
NiSource	November 2025	5.89	%	265.0			265.0
NiSource	May 2027	3.49	%	1,000.0			1,000.0
NiSource	December 2027	6.78	%	3.0			3.0
NiSource	December 2040	6.25	%	250.0			250.0
NiSource	June 2041	5.95	%	400.0			400.0
NiSource	February 2042	5.80	%	250.0			250.0
NiSource	February 2043	5.25	%	500.0			500.0
NiSource	February 2044	4.80	%	750.0			750.0
NiSource	February 2045	5.65	%	500.0			500.0
NiSource	May 2047	4.38	%	1,000.0			1,000.0
NiSource	March 2048	3.95	%	750.0			750.0
Total senior notes				$	6,831.6		$	7,516.9
Medium term notes:
NiSource	April 2022 to May 2027	7.99	%	$	49.0		$	49.0
NIPSCO	August 2022 to August 2027	7.61	%	68.0			68.0
Columbia of Massachusetts	December 2025 to February 2028	6.30	%	40.0			40.0
Total medium term notes				$	157.0		$	157.0
Capital leases:
NIPSCO	May 2018	3.95	%	$	—		$	3.8
NiSource Corporate Services	January 2019 to October 2022	3.68	%	11.6			1.4
Columbia of Ohio	October 2021 to June 2038	6.33	%	91.5			88.5
Columbia of Virginia	July 2029 to December 2037	7.12	%	15.2			5.2
Columbia of Kentucky	May 2027	3.79	%	0.3			0.4
Columbia of Pennsylvania	August 2027 to June 2036	5.42	%	30.0			31.0
Columbia of Massachusetts	December 2033 to November 2043	5.48	%	45.7			22.8
Total capital leases				194.3			153.1
Pollution control bonds - NIPSCO	April 2019	5.85	%	41.0			41.0
Unamortized issuance costs and discounts				(68.5		)	$	(71.5	)
Total Long-Term Debt				$	7,155.4		$	7,796.5

Details of our 2018 long-term debt related activity are summarized below:


•	On March 15, 2018, we redeemed $275.1 million of 6.40% senior unsecured notes at maturity.


•	In June 2018, we executed a tender offer for $209.0 million of outstanding notes consisting of a combination of our 6.80% notes due 2019, 5.45% notes due 2020, and 6.125% notes due 2022. In conjunction with the debt retired, we recorded a $12.5 million loss on early extinguishment of long-term debt, primarily attributable to early redemption premiums.


•	On June 11, 2018, we closed our private placement of $350.0 million of 3.65% senior unsecured notes maturing in 2023 which resulted in approximately $346.6 million of net proceeds after deducting commissions and expenses. We used the net proceeds from this private placement to pay a portion of the redemption price for the notes subject to the tender offer described above.


•	In July 2018, we redeemed $551.1 million of outstanding notes representing the remainder of our 6.80% notes due 2019, 5.45% notes due 2020 and 6.125% notes due 2022. During the third quarter of 2018, we recorded a $33.0 million loss on early extinguishment of long-term debt, primarily attributable to early redemption premiums.

Details of our 2017 long-term debt related activity are summarized below:


•	On March 27, 2017, we redeemed $30.0 million of 7.86% and $2.0 million of 7.85% medium-term notes at maturity.


•	On April 3, 2017, we redeemed $12.0 million of 7.82%, $10.0 million of 7.92%, $2.0 million of 7.93% and $1.0 million of 7.94% medium-term notes at maturity.

•

On May 22, 2017, we closed our placement of $2.0 billion in aggregate principal amount of our senior notes, comprised of $1.0 billion of 3.49% senior notes due 2027 and $1.0 billion of 4.375% senior notes due 2047. Related to this placement, we settled $950.0 million of aggregate notional value forward-starting interest rate swaps, originally entered into to mitigate interest risk associated with the planned issuance of these notes. Refer to Note 9, "Risk Management Activities," for additional information.


•	During the second quarter of 2017, we executed a tender offer for $990.7 million of outstanding notes consisting of a combination of our 6.40% notes due 2018, 6.80% notes due 2019, 5.45% notes due 2020, and 6.125% notes due 2022. In conjunction with the debt retired, we recorded a $111.5 million loss on early extinguishment of long-term debt, primarily attributable to early redemption premiums.


•	On June 12, 2017, NIPSCO redeemed $22.5 million of 7.59% medium-term notes at maturity.


•	On July 1, 2017, NIPSCO redeemed $55.0 million of 5.70% pollution control bonds at maturity.


•	On August 4, 2017, NIPSCO redeemed $5.0 million of 7.02% medium-term notes at maturity.


•	On September 14, 2017, we closed our placement of $750.0 million of 3.95% senior notes due 2048. Related to this placement, we settled $750.0 million of aggregate notional value treasury lock agreements, originally entered into to mitigate the interest risk associated with the planned issuance of these notes. Refer to Note 9, "Risk Management Activities," for additional information.


•	On September 15, 2017, we redeemed $210.4 million of 5.25% senior unsecured notes at maturity.

•

On November 17, 2017, we closed our placement of $500.0 million of 2.65% senior notes due 2022 to repay a $500.0 million variable-rate term loan due March 29, 2019. Related to this placement, we settled $250.0 million of aggregate notional value treasury lock agreements originally entered into to mitigate the interest risk associated with the planned issuance of these notes. Refer to Note 9, “Risk Management Activities,” for additional information.

See Note 18-A, "Contractual Obligations," for the outstanding long-term debt maturities at December 31, 2018.

Unamortized debt expense, premium and discount on long-term debt applicable to outstanding bonds are being amortized over the life of such bonds.

We are subject to a financial covenant under our revolving credit facility which requires us to maintain a debt to capitalization ratio that does not exceed 70%. A similar covenant in a 2005 private placement note purchase agreement requires us to maintain a debt to capitalization ratio that does not exceed 75%. As of December 31, 2018, the ratio was 61.4%.

We are also subject to certain other non-financial covenants under the revolving credit facility. Such covenants include a limitation on the creation or existence of new liens on our assets, generally exempting liens on utility assets, purchase money security interests, preexisting security interests and an additional subset of assets equal to $150 million. An asset sale covenant generally restricts the sale, conveyance, lease, transfer or other disposition of our assets to those dispositions that are for a price not materially less than fair market of such assets, that would not materially impair our ability to perform obligations under the revolving credit facility, and that together with all other such dispositions, would not have a material adverse effect. The covenant also restricts dispositions to no more than 10% of our consolidated total assets on December 31, 2015. The revolving credit facility also includes a cross-default provision, which triggers an event of default under the credit facility in the event of an uncured payment default relating to any indebtedness of us or any of our subsidiaries in a principal amount of $50.0 million or more.

Our indentures generally do not contain any financial maintenance covenants. However, our indentures are generally subject to cross-default provisions ranging from uncured payment defaults of $5 million to $50 million, and limitations on the incurrence of liens on our assets, generally exempting liens on utility assets, purchase money security interests, preexisting security interests and an additional subset of assets capped at 10% of our consolidated net tangible assets.